Welcome relief for pension fundsDOWNLOAD |
The Budget has extended the concession made available to account based superannuation pension recipients for another year.
In February 2009, a 50% reduction in the minimum pensions required to be paid from account-based pensions was announced. This reduction was to apply to the 2008-09 year only.
“So the extension of the 50% concession for a further year is a welcome move,” said Deloitte Superannuation Partner, John Randall.
“Pension funds are still suffering cash flow difficulties, particularly those that are self managed. This has eroded funds’ ability to pay minimum pensions without fire sales of investments even though there may have been some recent positive economic signs,” he said.
“This extension of the 50% reduction in the minimum pension requirements should give some breathing space to help retirement savings recover,” Randall said.
Last Updated:
Welcome relief for pension funds
(21.81 KB)
Contacts
- Name:
- Louise Denver
- Company:
- Financial Services, Deloitte
- Job Title:
- Director Media and Communications
- Phone:
- Tel: + 61 2 9322 7615, +61 4 1488 9857
- ldenver@deloitte.com.au
- Name:
- John Randall
- Company:
- Deloitte Australia
- Job Title:
- Partner, Deloitte Private
- Phone:
- Tel: +61 2 9322 7550
- jrandall@deloitte.com.au